TeachMeFinance.com - explain Selling out
Selling out -- When a broker arbitrarily closes the account
(in stocks or commodities) of a customer for failure to provide
margin or for some similar reason the operation is described as
selling out the customer.
On the London Stock Exchange when a seller of stock or
shares does not receive from his buyer the name of the party to
whom the stock is to be transferred (see Name) by an appointed
time he is entitled to sell the stock out; that is, to instruct the
official broker to make a fresh sale for cash. The difference
'between the price at which the fresh sale is made and that of
the original bargain, together with the official broker's commission, is charged to the person responsible for the delay in passing
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